Financial Investors Trust ALPS/CoreCommodity Natural Resources ETF

CCNR

Valor de mercado US$ 440 mi

Amid two ongoing hot wars involving major energy-producing countries — the war in Iran and the Russia/Ukraine conflict — the commodities arena may appear to be a hazardous place for investors to allocate capital. But recent pullbacks by some commodities-linked equities could prove to be buying opportunities.

With megacap tech driving extreme market concentration, traditional equity and fixed income portfolios face growing structural challenges. A recent SS&C ALPS Advisors webcast, “Building Resilient Portfolios With Real Assets” — moderated by TMX VettaFi's Roxanna Islam alongside experts Carl Zeller and Richard Baker — demonstrated how incorporating real assets can help diversify your portfolio.

At the sector level, energy is king this year thanks in large part to the wars in Iran and Ukraine. Those ongoing conflicts are hampering exports from those nations.

Real assets are taking on a bigger role in portfolios as the global economy needs more physical infrastructure. SS&C ALPS Advisors offers several ETF strategies designed to capture different parts of the real-assets market.

With oil prices uncomfortably high, the same being true of inflation, and all the talk of a new supercycle dawning, it's not surprising commodities are in the spotlight. The asset class is garnering plenty of adulation this year.

As of August 25, the ALPS CoreCommodity Natural Resources ETF (CCNR) has returned 27.71% year-to-date amid natural resource tailwinds. The fund's gains come as the commodity complex has become increasingly fragmented, with gold near multi-month highs, copper testing record levels, and oil retreating from a geopolitically-driven spike.

With gold and silver slumping and oil surging, it's been an interesting, if not turbulent seven months for commodities. Those are the breaks, when getting involved with futures and spot markets.

Electrification ETFs, commodities, and the line between investing and speculation were at the center of this week's ETF Prime. Host Nate Geraci welcomed Paul Baiocchi, head of fund sales and strategy at SS&C ALPS Advisors, and Dave Nadig of ETF.com.

Despite a disappointing year for gold and silver — the two most widely observed commodities — broader commodity strategies are continuing to deliver for investors. Just look at the actively managed ALPS CoreCommodity Natural Resources ETF (CCNR).

Commodities exchange traded fund exposure may matter more now than at any recent point. That was the central message at a VettaFi webcast held Tuesday.